2024 Income Tax Calculator
Estimate your federal tax liability or refund
2024 Tax Planning: Smart Strategies to Reduce Your Liability
Key Update: The standard deduction increased by 5.4% for 2024, meaning more tax-free income for most filers.
Understanding Progressive Tax Rates
Many taxpayers mistakenly believe moving to a higher tax bracket means all their income gets taxed at that rate. In reality:
- Only income above each threshold is taxed at the higher rate
- The first $11,600 (single) or $23,200 (married) is taxed at just 10%
- Strategic income management can help keep you in lower brackets
| Single Filers | Rate | Married Filing Jointly |
|---|---|---|
| Up to $11,600 | 10% | Up to $23,200 |
| $11,601-$47,150 | 12% | $23,201-$94,300 |
| Over $609,350 | 37% | Over $731,200 |
Three Often-Overlooked Tax Savings Opportunities
1. Retirement Contribution Timing
You have until April 15, 2025 to make 2024 contributions to traditional IRAs and certain other retirement accounts. This last-minute deduction can significantly reduce taxable income.
2. Health Savings Accounts (HSAs)
Triple tax advantage:
- Contributions are deductible
- Growth is tax-free
- Withdrawals for medical expenses are untaxed
2024 limits: $4,150 (individual) / $8,300 (family)
3. Tax-Loss Harvesting
Offset capital gains by selling underperforming investments at a loss. You can deduct up to $3,000 annually against ordinary income.
Important Consideration
The $10,000 cap on state and local tax (SALT) deductions remains in place through 2025, which may impact residents of high-tax states.
When to Consult a Tax Professional
While our calculator provides helpful estimates, consider professional advice if:
- You have multiple income streams (rental properties, businesses)
- You exercised stock options or have complex investments
- You're navigating major life changes (marriage, divorce, inheritance)